1. Voluntary Closure through Strike Off under Section 248

• A Nidhi Company may apply for closure by applying strike off under Section 248 of the Companies Act, 2013.
  
• This applies when the company has ceased all business operations for at least one year.
  
• The Board must pass a resolution for voluntary closure, followed by a special resolution by the members.
  
• Approval must be obtained from 75% of shareholders in terms of paid-up share capital.
  
• The application is filed in Form STK-2 with the necessary documents and government fees.
  

2. Preconditions for Filing Strike Off

• The company must ensure that there are no outstanding liabilities or dues.
  
• All deposits must be repaid to members, and no dues should remain unpaid.
  
• Financial statements and returns must be filed up to date with the Registrar of Companies (ROC).
  
• A No Objection Certificate (NOC) from regulatory bodies such as the MCA or the RBI (if applicable) may be required.
  
• A declaration must confirm that the company is not under inspection, inquiry, or litigation.
  

3. Filing of STK-2 and Supporting Documents

• The application for strike off is filed using Form STK-2 on the MCA portal.
  
• Required attachments include:
  – Certified copy of the Board resolution and special resolution
  – Statement of accounts not older than 30 days from the filing date
  – Affidavits and indemnity bonds from all directors (Form STK-4 and STK-3)
  – Consent letter from members and declaration of non-operation
  
• The application must be digitally signed and submitted by a director with professional certification (CA/CS/CMA).
  

4. Approval and Publication by Registrar

• After review, the ROC may issue a public notice (STK-6) inviting objections within 30 days.
  
• If no objections are received and documents are in order, the ROC may strike the company off the register.
  
• The name of the company is then published in the Official Gazette, confirming its closure.
  
• From this point, the Nidhi Company ceases to exist as a legal entity.
  
• The ROC will also update the status of the company on the MCA portal as “Struck Off”.
  

5. Alternative: Winding Up through NCLT

• If the company has assets, liabilities, or disputes, it cannot use the strike-off route.
  
• In such cases, the company must apply for winding up through the National Company Law Tribunal (NCLT).
  
• This involves a formal liquidation process, including the appointment of a liquidator and settlement of claims.
  
• The process is governed by the Insolvency and Bankruptcy Code (IBC) and the Companies Act, 2013.
  
• Legal assistance is recommended for NCLT-based closure due to its complexity and regulatory scrutiny.